Texas Street Maintenance Sales Tax

San Angelo does  not have the funds necessary to repair and maintain existing streets. Some residents have proposed that San Angelo adopt the Texas Street Maintenance Sales Tax to help provide financial support to repair and maintain existing streets.

Section 327.004 Tax Code allows cities to raise sales rate by 1/8 % or 1/4% of 1 % if the funds are dedicated to street maintenance and repair.

The proposal being presented to San Angelo City Council is to use 1/8% of 1 % of the special use ½ cent sales tax. This proposal will not raise taxes but will redistribute funds  to  necessary street repair and maintenance projects while leaving the bulk of the money collected under the ½ cent special use tax in place.

So far this year council has authorized about $3,000,000 for street repair and maintenance from the general fund. Estimates are that the proposed Street Maintenance Sales Tax will provide an additional  $6,000,000 annually toward street repair and maintenance costs.

Presently cost estimates to bring San Angelo streets up to acceptable levels of condition are $56,000,000. Adopting the Street Maintenance Sales Tax will not solve the total problem immediately but it help to provide a step by step solution to the problem. If we do not being to act now the problem will accumulate and the price will increase three fold in the next 15 years.

As the encroachment of the present oil industry boon moves in on San Angelo sales tax revenue will increase as will the wear and tear on our streets. The Texas Street Maintenance Sales is one viable way we can use the increase in sales tax revenue to protect ourselves.

The Texas Street Maintenance Sales Tax requires voter approval. The city’s council must adopt  an ordinance calling for the proposal to be put on the ballot on a uniform election date. The next possible date in San Angelo will be in May 2014 when elections will be held for council seats SMD1 and SMD5.